(DRAFT) Technical Descritpion Camp Foster ESPC Natual Gas Scope of Work.docx

Technical Description for Natural Gas at Camp Foster

Day Month Year

1. General Description of the Natural Gas Requirements: The Contractor shall provide all personnel, equipment, tools, materials, supervision and other items and services necessary to provide natural gas, twenty-four (24) hours a day, seven (7) days a week, to the Central Utility Plant, Building 961, at U.S. Naval Hospital Okinawa located on Camp Foster via a gas pipeline. The Contractor shall coordinate and conduct periodic and emergency inspections on Government-owned gas line from the supply point listed above to the connection point in accordance with Japanese Gas Business Act (Act No. 51 of March 31, 1954) and all other relevant laws. As for any matters that are not addressed by the Statement of Work, the Government and the Contractor shall have mutual consultation based on the "Supply Rules” and the “General Supply Provisions" of the local General Gas Business.

1.1. Required Natural Gas Pressure/Volume at the Main Boiler Plant at Supply:

Contractor shall ensure the following pressure, quality, and type of gas is provided to the boiler plants listed above, twenty-four (24) hours a day, seven (7) days a week:

· Supply Pressure at the plant: 0.3 - 1.0 MPa at normal supply temperature of 30 deg C or below

· Quality of gas/heat content: 40.6 MJ/Nm3(LHV)

· Type of gas: City Gas 13A

It is estimated that the following natural gas volumes will be required:

· Projected Hourly Maximum Flow: 1,954 m3/Hr

· Projected Annual Consumption: 14,273,670 m3/Yr

· Annual Minimum Order Amount: 5,822,649 m3/Yr

1.2. Required Technical Submittals: The contractor will provide the following technical submittals as part of this contract within 10 business days after award:

· Inspection/Maintenance Plan, and Emergency Response Plan.

1.2.1. Inspection/Maintenance Plan: The Contractor shall submit an Inspection/Maintenance Plan for government acceptance. The Contractor’s Inspection/Maintenance Plan shall include maintenance in accordance with the manufacturer’s recommendations, as well as all relevant gas and construction laws, including but not limited to: all filters and valves, the emergency shut-off valve system, and all above ground gas piping systems to include leak detection as outlined by the following:

· Leak-Detection of Gas Pipes: Leak-detection will be inspected with a gas leak detector. This inspection will occur at least once every 48 months according to Gas Utility Industry Law or upon request.

· Open-close Test of Valve: Each valve will be inspected by shutting it half-way to ensure that it is functioning properly. This inspection will be provided upon request by Marine Corps Installations Pacific (MCIPAC) G-F.

· Measurement of Potential at each Magnesium-Electrode: The potential of each magnesium-electrode will be measured and the condition of buried gas pipes checked as part of this inspection. The inspection will occur once every 48 months or as recommended by the manufacturer, whichever is shorter.

· Inspection of Emergency Shut-Off Valve: This inspection will only occur under the condition that the gas supply will be interrupted or in accordance with the most recent relevant gas and construction laws. It will include an operation test and a total test. There will be an inspection of the appearance, and batteries. Measurement of the insulation resistance and a horizontal check of seismometer will also be performed. The inspection will be performed every 12 months or as recommended by the manufacturer.

1.2.2. Emergencies: The Contractor shall provide an Emergency Response Plan to the government for acceptance. The Emergency Response Plan shall define the procedure by which service shall be restored in the event of an emergency, including but not limited to: the size and composition of the response team, the initial equipment brought to diagnose the issue, the maximum response time to an emergency call, and any leak detection/damage sensing methods employed. For the purposes of this statement of work, an emergency is defined as any unscheduled interruption of service, including but not limited to: natural disasters, leaks and line maintenance performed without prior notification., The Contractor must be able to receive trouble calls from the Government, 24 hours a day, 7 days a week, and respond within thirty (30) minutes of an emergency call and inspect the gas system. The Contractor shall report to the Contracting Officer/Technical Representative upon arrival on site.

No later than the first day of performance, after contract award, the Contractor shall provide to the Contracting Officer the Point of Contact (POC) list so that MCIPAC G-F can contact the Contractor POC, 24 hours a day, 7 days a week in case of emergency, including but not limited to gas or gas stoppage. The Contractor shall provide an updated list to the Contracting Officer no later than the date the POC list change takes effect during the contract term. The Contractor shall contact at least thirty (30) calendar days in advance to schedule periodic inspection, on the Government-owned gas line.

1.3. Periodic and Emergency Inspection on Government-Owned Gas Line: In accordance with Japanese Gas Business Law, the Contractor shall conduct periodic and emergency inspections on the Government-owned gas lines between Supply Point and Connection Point. A schedule of these inspections will be provided to MCIPAC G-F in accordance with paragraph 1.2.1. The Contractor shall notify the Government if it finds the Government- owned gas lines to be in an unsafe condition or needs repair in accordance with industrial standards. All repairs to the Government owned gas lines will be made at Government expense, except those that have been determined to be caused by the Contractor’s negligent acts or omissions. Any debris and materials generated from the inspection at the site shall be cleaned and disposed of by the Contractor.

1.4. Meter Reading and Calculation of Gas Consumption

1.4.1. Meter Devices: Contractor shall install suitable metering equipment of standard manufacture and maintain and repair them at Contractor’s expense. When more than a single meter is installed at a service location, the readings thereof may be billed conjunctively, if appropriate. In the event any meter fails to register (or registers incorrectly) the services furnished, the parties shall agree upon the length of time of meter malfunction and the quantity of service delivered during such period of time. An appropriate adjustment shall be made to the next invoice for the purpose of correcting such errors. Meter devices shall be certified and inspected in accordance with Japanese Measurement Act (Act No. 51 of May 20, 1992).

1.4.2. Meter Reading: The Contractor shall read all meters at periodic intervals of approximately 30 calendar days or in accordance with the policy of the cognizant regulatory body or applicable bylaws in the presence of Government representatives. The Contractor shall include the date of the meter reading in all official communications.

1.4.3. Meter Test: At the written request of the Contracting Officer, the Contractor shall test any and all identified meters in the presence of Government representatives. The cost of such additional tests shall be borne by the Government if the percentage of errors is found to be not more than 1 percent slow or fast. In the event the meter is found to be out of tolerance, the cost shall be borne by the Contractor.

1.5. Annual Estimate Order: An annual Estimate Order will be issued each year (prior to gas being supplied) to inform the Contractor of the estimated quantity, estimated monthly usage, and unit price fixed in Attachment 1, Pricing Schedule for the year.

2. Gas Price

2.1. Rates and Charges of Service: In accordance with Article VII of the Agreement Under Article VI of the Treaty of Mutual Cooperation and Security Between the United States of America and Japan, Regarding Facilities and Areas and the Status of United States Armed Forces in Japan (SOFA), the rates and charges of natural gas under this contract shall be no less favorable than those that may be applicable from time to time to the ministries and agencies of the Government of Japan.

2.2. Gas price shall be calculated as follows:

Gas Price = Usage x (Unit Price ± Gas Resource Cost Adjustment Price)

2.3. Gas Resource Cost Adjustments: The unit price shall be adjusted on a monthly basis in accordance with the Ordinance for Enforcement of the Gas Business Act and Contractor’s latest version of rules and regulations, so called “Ooguchi Gas Jukyuu Yakkan” in Japanese, submitted to the Ministry of Economy, Trade and Industry of Government of Japan. The Gas Resource Base is ¥57,300/ton.

2.4. Charges: If the certain price factors are in excess or below the specified amount, penalty fees are charged as follows:

2.4.1. Minimum Order: The Government shall order a yearly Minimum Order amount. If the actual yearly usage does not reach the yearly Minimum Order, a settlement amount for shortage of Minimum Order will be charged. The fee shall be calculated in accordance with the Contractor’s rules and regulations, so called “Ooguchi Gas Jukyuu Yakkan” in Japanese.

2.4.1.1 Exceptions: No penalty shall be assessed for failing to achieve the minimum purchase order in the event that circumstances beyond the control of the government prevent the flow of gas from reaching the contracted buildings.

2.4.2. Excess of Hourly Max Flow Volume Charge:

When the Hourly Max Flow Volume exceeds the contract Hourly Max Flow Volume, an overage fee shall be assessed. The fee shall be calculated in accordance with the Contractor’s rules and regulations, so called “Ooguchi Gas Jukyuu Yakkan” in Japanese.

2.4.3. Yearly Load Factor: Yearly Load Factor is calculated as follows:

Yearly Load Factor = Monthly average usage in a year / Monthly average usage in the Peak Demand Season (December, January, February, and March)

When the actual yearly Load Factor is less than 75 %, shortage of yearly Load Factor will be charged. The fee shall be calculated in accordance with the Contractor’s rules and regulations, so called “Ooguchi Gas Jukyuu Yakkan” in Japanese

2.4.4. Invoices:

An invoice shall include calculation formula to cite evidence for a Gas Resource Cost Adjustment Price of the month. Unit price of Gas Resource Cost Adjustment as well as the gas price shall be listed separately on the invoice. Charges for a settlement amount for shortage of yearly minimum order, excess of hourly max flow volume, and shortage of yearly load factor, if any, shall be listed separately on the invoice.